Invoice and Voucher Janel Carey, Jennifer Abinette, Shannon Soja, - PowerPoint PPT Presentation

Invoice and Voucher Janel Carey, Jennifer Abinette, Shannon Soja, Moet Slaughter (OSC) Liz Vandenburg (SFS) James West (BSC) 1 1

Roadmap • Proper Invoice • Validating Receipt of Goods and Services • Key Dates in the SFS • Procure-to-Pay (P2P) Streamline Business Model Process • Resources • Contact Us 2

Proper Invoice 3

Proper Invoice – Mandatory Information • Written or electronic request for payment submitted by the vendor. • Must contain: – Vendor Name – Name of NYS Agency that ordered the goods/services – Description of goods/services – Quantity delivered or rendered* – Amount requested *Consistent with NY State Finance Law §§ 109(1) and 179-e(5) GFO: XII.4.F - Proper Invoice 4

Missing Mandatory Information • If an invoice does not have these required fields, agencies must reject invoice. • Cannot short pay an invoice. – If amount to be paid is less than amount invoiced, agencies must reject invoice. • Must notify vendor within one business day to resubmit proper invoice with necessary information. GFO: XII.4.F - Proper Invoice 5

Importance of Mandatory Information • Basis for validating deliverables. – Benefits of a good description. • Vendors should only invoice once goods, property, or services have been delivered or rendered. – If not, agencies should return unpaid invoice to vendor. • Must notify vendor within one business day to resubmit a proper invoice for correct amount. • May lose available early payment discounts or lose short term interest by paying invoices earlier than necessary. GFO: XII.4.F - Proper Invoice 6

Proper Invoice – Additional Information • Should contain: – NYS Vendor ID number – Invoice Date – Unique Invoice Number – PO number, if applicable • Must ensure PO number is correct – Payment terms, if other than Net 30 – Any other info agency may reasonably require as communicated in contract/PO GFO: XII.4.F - Proper Invoice 7

Missing Additional Information • If an invoice does not contain this additional information, agencies should : – Work with vendor to obtain; or – Return invoice to vendor for correction. • Must notify vendor within one business day to resubmit with necessary information. GFO: XII.4.F - Proper Invoice 8

Proper Invoice • Supported by substantiating documentation agencies may reasonably require at time of, or subsequent to, receipt of invoice. • Invoices not properly substantiated by documentation or fact must be denied for payment. – Must notify vendor within one business day to resubmit. GFO: XII.4.F - Proper Invoice 9

Validating Receipt of Goods and Services 10

Supporting Information • Agency certifiers should be satisfied acceptable information or documentation is on file to: – (i) show goods and/or services provided by vendor are in accordance with terms and conditions of agreement; or – ( ii) verify employee expenses are in accordance with New York State’s travel rules and regulations, union contracts, or agency policies. • Effective review of claims can reduce risk of agencies overpaying vendors for incorrect type, quantity, and/or price of goods and services billed. GFO: XII.4.B.1 – Supporting Information 11

Supporting Information • Agencies may use risk-based approach, with greater focus on claims that pose a higher risk of being incorrect. • To determine if a claim for payment is appropriate to pay prior to being certified and submitted to the Comptroller, agency staff need to know: – Type of claim for which vendor or employee is seeking payment. – Types of information that can support the claim. – Where reviewer can obtain supporting information. – How to evaluate supporting information. GFO: XII.4.B.1 – Supporting Information 12

Supporting Information • Obtain enough information to provide assurance vendor delivered goods/services as expected. – e.g., requisition and/or PO, invoice or claim for payment, confirmation agency received the goods or services. • Analyze information or documentation. – Determine if vendor provided correct good/service at right price. • Request additional back up information from vendor. – Can often deter inappropriate claims. GFO: XII.4.B.1 – Supporting Information 13

Evaluating Supporting Information • Ensure information obtained in support of a claim for payment or expense report pertains directly to that claim or report. • A large amount of supporting information does not make up for lack of reliable, high-quality support. • Agencies may require an explanation/cross-walk from the vendor in addition to the detailed documentation. GFO: XII.4.B.1 – Supporting Information 14

Types of Information - Goods • Invoice or Claim for Payment • Packing slips • Receiving report • Receipts • Contract, program requirements, other agreements GFO: XII.4.B.1 – Supporting Information 15

Verifying Information - Goods • Re- perform vendor’s calculations. • Verify description, quantities and prices on invoice match contract, receiving report, PO. • Verify rates charged on invoice are allowable under enabling agreement. GFO: XII.4.B.1 – Supporting Information 16

Verifying Information - Services • Invoice or Claim for • Cancelled payroll checks Payment • Timesheets • Licenses, certifications, etc. • Contract, program requirements, • Resumes other agreements • Background checks • Subcontractor agreements • Payroll records GFO: XII.4.B.1 – Supporting Information 17

Verifying Information - Services • Re-perform vendor’s calculations. • Verify names and titles of employees providing services are allowable under PO or contract. • Verify hours worked, pay rates/salaries do not exceed max allowable. • Ensure dates of services are within contract period. GFO: XII.4.B.1 – Supporting Information 18

Verifying Information - Services • Verify professional services met qualifications required for title ordered/billed. • Compare resumes to qualifications required. • Verify professionals providing services do not have any criminal offenses that would prevent them from providing requested services. – e.g., background checks. GFO: XII.4.B.1 – Supporting Information 19

Verifying Information - Services • Ensure hours on payroll records match timesheets. • Review cancelled payroll checks to verify employees were compensated. • Verify vendor billed for services in accordance with subcontractor agreements. GFO: XII.4.B.1 – Supporting Information 20

Key Dates in the SFS 21

Invoice Received Date • Date proper invoice is received in designated payment office. – Should designate payment office in writing in contract and/or PO(s). • Online: – Required for all payments to “procurement suppliers” and interest eligible payments. – Must be provided on voucher. • Bulkload: – Required for all payments to “procurement suppliers.” – Able to submit IRD. – If left blank, SFS will populate IRD with MIR date from bulkload transaction. GFO: XII.5.F.2 – Invoice Received Date 22

Invoice Received Date • Paper or Email Invoices: – Date proper invoice was received in designated payment office. • Electronic Invoices: – Date populated automatically by SFS. • Date vendor submitted proper invoice prior to 5:00 PM on business days. • Next business day if submitted on weekends, holidays, or after 5:00 PM on business days. GFO: XII.5.F.2 – Invoice Received Date 23

MIR Date • Later of: – Date proper invoice was received in designated payment office. – Purchased goods, property, or services covered by proper invoice are received or inspection of goods is completed, when applicable. • Used to calculate Net Due Date. • May be adjusted in certain circumstances. – Online agencies may update MIR Adjustment Date field. GFO: XII.5.F.3 – Adjusting the MIR Date 24

MIR Adjustment Date • Populates with Invoice Received Date. • Receiving required: – MIR date is later of: • MIR Adjustment Date; or • Merchandise Received/Inspection Date on PO. • Receiving not required: – MIR Date is equal to MIR Adjustment Date. GFO: XII.5.F.3 – Adjusting the MIR Date 25

MIR Adjustment Date GFO: XII.5.F.3 – Adjusting the MIR Date 26

MIR Adjustment Date • Examples of when to adjust: – OSC determines there is reasonable cause to believe payment may not properly be due in whole or in part. – Applicable appropriation has yet to be enacted (passed and signed). – Goods/services have not been delivered/rendered in compliance with terms or conditions of contract. – Goods/services delivered are defective. GFO: XII.5.F.3 – Adjusting the MIR Date 27

Basis Date • Drives Scheduled Due and Discount Due dates. • Procurement Suppliers: – Default is Invoice Received Date. • All other vendor classifications: – Default is Invoice Date. GFO: XII.5.F.1 – Basis Date 28

Scheduled Due Date • Date voucher is scheduled to pay. • Automatically calculated based on Invoice Received Date (Basis Date) and payment terms. • Example: – Invoice Received Date (Basis Date) = June 1 – Payment term = Net 30 – Scheduled Due date = June 30 GFO: XII.5.F.4 – Selecting the Appropriate Pay Terms 29

Adjusting the Scheduled Due Date • Special circumstances: – Lapsing – Fiscal Year End – Emergency Payments • e.g., vendor will not make payroll, utilities will be shut off. GFO: XII.5.F.4 – Selecting the Appropriate Pay Terms 30